Even though there are numerous companies who throw their credit cards at you, not all credit cards are safe. If you want to apply for a credit card, there are some things to consider. So, without further ado, here are the main things to consider when applying for a credit card.
Get Familiar with Your Credit Score
Contrary to what many companies claim, you need a good credit score to get your credit card application accepted. In general, a good credit score is a score of 690 and up.
To ensure you have a good credit score, make sure you make your payments on time and keep balances low on any existing credit card. Also, make sure to avoid any new debt.
Before you fill in your application, make sure that you don’t have any outstanding debt. 30% of a person’s credit score is determined by the amount of money you owe, so if you have a large debt, it could have a negative influence on your application.
Related: 3 Ways to Raise Your Credit Score
Consider All Offers
If you do not have a good credit score, it could be tempting to jump on the first credit card provider that might accept you. However, it is always best to consider all your offers, because some credit card providers are too good to be true. Instead, weigh up all offers and choose a credit card provider that fits your needs.
Related: The Best Cash Back Cards of 2017
Add All Income to Your Application
To determine the best credit card for you, it is necessary to add all your income to your application. Even though lenders will look at your credit score, your income determines your ability to make repayments. Therefore, if you do not include this information in your application, it is likely that a good lender will decline.
Don’t Be Discouraged by Refusals
Even if you have filled in your application perfectly and believe you might be eligible to benefit from a certain credit card, there is always a chance you will get declined. If this happens to you, it is important not to give up on that lender immediately. Some credit card providers allow you to call them, so you can ask them to reconsider.
Before you make the call to a lender, make sure you are properly prepared. Always ask why your application was refused and make sure you do some research into your credit report before you make the call. It is also advised to formulate a convincing argument why they should accept you beforehand, because this could make the difference!
Applying for a credit card may seem like a daunting process, especially if your credit score is not on par with most of the American population; this is why it is vital to check your credit score beforehand and fill in an application that is impossible to refuse.
Are you not ready to apply for a credit card yet? Then, make sure to work on your debt and eliminate it. Also, try to build a better credit score, so it is less likely for lenders to refuse your application.